WASHINGTON — Only 10 electric vehicle models will qualify for a full $7,500 tax credit when increasingly stringent critical mineral and battery component sourcing requirements take effect Tuesday.
Seven models are eligible for a partial credit of $3,750 under the tougher eligibility rules, while nine previously eligible models would no longer qualify, according to an updated list released Monday.
Under the Inflation Reduction Act, buyers who meet certain income thresholds can get a tax credit of up to $7,500 for North American-assembled new EVs that also meet sticker price restrictions.
Starting Tuesday, the credit will be split in two, with $3,750 for EVs that have at least 40 percent of the value of the battery's critical minerals extracted or processed in the U.S. or in a country where the U.S. has a free-trade agreement, or from materials that were recycled in North America. Another $3,750 is available if at least half of the value of the EV's battery components are made or assembled in North America.